Last updated: 2026-07-09
Price Benchmarks: How the World Actually Prices an Ounce of Gold
Three benchmark systems set global gold prices: the LBMA Gold Price (London,
twice-daily electronic auction), COMEX gold futures (New York, the world's most liquid derivatives
market), and the Shanghai Gold Exchange Benchmark Price (China, the only major fix settled with
physical delivery of 1 kg bars at the point of auction). Each serves a different constituency,
and arbitrage between London spot and COMEX futures — the Exchange for Physical mechanism
— keeps them within a few dollars of each other most trading days.
1. The LBMA Gold Price: from the 1919 fix to ICE's electronic auction
The LBMA Gold Price replaced the London Gold Fixing — in continuous operation
since September 1919 — with a physically settled, electronic, and tradeable
auction that launched in March 2015. ICE Benchmark Administration (IBA)
was appointed administrator, running the auction on ICE's WebICE platform in three currencies
(USD, EUR, GBP), regulated by the UK Financial Conduct Authority and aligned with IOSCO Principles
(ICE, 2 Feb 2015).
The auction runs twice daily — the AM auction and PM auction — at 10:30 and
15:00 London time, with aggregated bids and offers updated and rebalanced roughly every 30
seconds until the imbalance between buy and sell orders falls within a defined tolerance
(ICE Developer Portal, LBMA Gold Price).
Direct participants are major bullion banks — HSBC, JPMorgan, UBS, Goldman Sachs, and Bank of
China among them — and trades settle “loco London,” meaning gold is priced and
delivered in the form of 400-ounce Good Delivery bars inside the London vaulting network
(Bullion Trading LLC, LBMA/COMEX pricing explainer).
2. COMEX gold futures: the world's price-discovery engine
COMEX gold futures (ticker GC), operated by CME Group, are the
most heavily traded gold derivative in the world, with contract specifications covering a standard
100 troy ounce unit alongside smaller e-micro and enhanced-delivery variants
(CME Group, Gold Futures Contract Specs).
CME's Accumulated Certificates of Exchange (ACE) mechanism lets holders of a standard 400-ounce Good
Delivery bar split it into four tradeable units for delivery against 100-ounce COMEX contracts,
bridging the London 400-oz bar standard with COMEX's 100-oz contract size
(CME Group, Gold (Enhanced Delivery) Futures FAQ).
Because COMEX trading hours overlap with the London afternoon session, arbitrageurs use
Exchange for Physical (EFP) transactions to swap a COMEX futures position for
loco-London physical gold or vice versa, keeping the EFP spread — the gap between COMEX
futures and London spot — as the standard barometer of relative tightness between the two
markets (Bullion Trading LLC).
3. The Shanghai Gold Exchange: China's physically settled, centrally cleared fix
The Shanghai Gold Exchange (SGE) Benchmark Price (exchange code SHAU, informally
the “Shanghai Gold Fix”) launched on 19 April 2016 as a twice-daily
auction at 10:15 and 14:15 Beijing time, quoted in RMB per gram on physically delivered 1 kg
lots of 99.99% (Au9999) purity gold or higher
(BullionStar, SGE infrastructure guide).
Unlike the LBMA auction, the SGE fix uses central clearing, with the exchange
itself acting as counterparty to all buyers and sellers, and delivery occurs at any of the SGE's
certified vaults across dozens of Chinese cities
(SGE, Shanghai Gold Benchmark Price White Paper).
The auction draws an opening reference price from two groups — 12 Fixing Members
(commercial banks) and a handful of Reference Price Members (gold miners and
jewellery companies) — specifically to broaden the price-setting base beyond financial
institutions alone
(CME Group, Shanghai Gold Futures FAQ).
Standard gold accepted into the fix must originate from an SGE-approved refinery or an
LBMA-approved refinery, directly linking Chinese domestic settlement to the London Good Delivery
standard (BullionStar, Shanghai Gold Benchmark Price).
4. Convergence and divergence: how the three benchmarks interact
SGE prices frequently trade at a premium or discount to London/COMEX levels, reflecting Chinese
domestic supply-demand imbalances, capital controls, and import quota policy rather than a failure
of arbitrage (MetalCharts, SGE live data explainer).
In July 2026, IBA extended its role beyond gold and silver to also operate the LBMA Platinum and
Palladium Prices, consolidating administration of all four LBMA precious-metal benchmarks under one
infrastructure provider
(Business Wire, 7 Jul 2026).
A conduct standard published jointly by the FMSB governs how banks manage client and house orders in
LBMA auctions, addressing the market-manipulation concerns that originally forced the 1919-era
Fixing to be replaced
(FMSB, Standard for Conduct of Participants in LBMA Auctions).
Current status (July 2026):
All three benchmark mechanisms are operating normally. IBA now administers all four LBMA precious
metal benchmarks (gold, silver, platinum, palladium) as of 1 July 2026. Watch:
further consolidation of precious-metals benchmark administration under IBA; SGE premium/discount
trends as a signal of Chinese domestic demand tightness.
Last updated: 2026-07-09
Global Supply: Mine Production, Reserves, and the 25–30% That Comes From Recycling
World mine production reached an estimated 3,300 tonnes in 2025, up marginally from
3,280 tonnes in 2024, with China, Russia, Australia, Canada, and the United States together
accounting for
41% of global output
(
USGS MCS 2026, gold chapter).
Recycled gold supplied an estimated
90 tons, or about 60% of U.S. reported consumption
in 2025 — secondary supply's role is structurally larger in the U.S. market than in global
aggregate figures, which typically put recycling nearer 25–30% of total annual supply.
1. Mine production by country: China leads, but no single producer dominates
| Country | 2024 (t) | 2025e (t) | Reserves (t) |
| China | 377 | 380 | 3,200 |
| Russia | e310 | 310 | 12,000 |
| Australia | 284 | 280 | 13,000 |
| Canada | e200 | 200 | 3,200 |
| United States | 163 | 160 | 3,000 |
| Ghana | 149 | 150 | 1,000 |
| Kazakhstan | e130 | 130 | 2,300 |
| Uzbekistan | 129 | 130 | 2,200 |
| Mexico | 140 | 140 | 1,400 |
| Peru | 108 | 110 | 2,200 |
| Indonesia | e94 | 90 | 3,600 |
| Brazil | e82 | 80 | 2,500 |
| South Africa | 90 | 90 | 5,000 |
| Other countries | 1,020 | 1,000 | 11,000 |
| World total (rounded) | 3,280 | 3,300 | 66,000 |
Source: USGS Mineral Commodity Summaries 2026, gold chapter.
Russia's reserve base (12,000 t) and South Africa's (5,000 t) are large relative to their current
output, giving both countries far longer reserve-to-production runways than China, whose reserves
(3,200 t) imply a much shorter mine life at current extraction rates
(USGS Open-File Report 2026-1018),
which separately notes China's gold reserve-to-production ratio was roughly 8 years as of 2023,
versus 38 years for Russia and 48 years for South Africa.
2. U.S. domestic production: Nevada's Carlin Trend still dominates
U.S. domestic gold mine production was an estimated 160 tons in 2025, valued at
$17 billion — a 32% increase in value from 2024 driven almost entirely by the
price surge rather than volume growth. Nevada accounted for about 64% of total
domestic production and Alaska for about 22%, with more than 40 lode mines
operating across 12 states plus numerous placer operations, mostly in Alaska. About 7% of
U.S. gold is recovered as a byproduct of processing base-metal ores, chiefly copper, and
the top 25 U.S. mining operations account for roughly 94% of domestic mined output
(USGS MCS 2026).
The U.S. Treasury separately holds 8,130 tons of gold stock, unchanged across 2021
to 2025, valued in government accounts at the historical statutory price of $42.22 per troy ounce
— a figure with no relationship to the market price
(USGS MCS 2026).
3. Recycling and secondary supply: the price-elastic swing source
USGS estimates U.S. recycled new and old scrap at 90 tons in 2025, equivalent to
about 60% of reported U.S. consumption and slightly higher than 2024
(USGS MCS 2026).
Globally, gold recycling is typically estimated at roughly 25–30% of total annual supply
across a full market cycle, and it behaves as the most price-elastic supply source in the entire
gold market: jewellery and old scrap flow back into the refining system fastest when prices spike,
smoothing what would otherwise be sharper price moves during mine-supply disruptions. Unlike
primary mine output, recycling responds within weeks to price signals rather than the years needed
to bring new mining capacity online.
4. World gold resources beyond current reserves
Beyond the 66,000-tonne reserve base, USGS estimates total U.S. gold resources at 33,000
tons — 15,000 tons identified and 18,000 tons undiscovered — with nearly a
quarter of the undiscovered component believed to sit within porphyry copper deposits, reflecting
gold's increasing recovery as a copper-mine byproduct rather than from dedicated gold-only orebodies
(USGS MCS 2026).
USGS notes explicitly that U.S. resources are “only a small portion of global gold
resources,” underscoring that the reserve figures in the table above understate the metal's
long-run geological availability even as they anchor near-term mine-planning decisions.
Current status (July 2026):
Global mine supply growth remains modest (+0.6% in 2025) even as prices roughly doubled from 2023
to 2025, illustrating gold mining's long lead times and inelastic short-run supply response.
Watch: USGS MCS 2027 (due February 2027), China Gold Association annual domestic
production data, and recycling-flow data as a leading indicator of retail sentiment toward high
prices.
Unlike many industrial metals, gold mining is not concentrated in a handful of state-linked national
champions; the largest producers are a mix of Western multinationals (Newmont, Barrick, Agnico
Eagle, Kinross), a South Africa/West Africa-focused group (AngloGold Ashanti, Gold Fields, Harmony),
and increasingly ambitious Chinese consolidators (Zijin Mining, Zhaojin Mining) expanding overseas
through acquisition.
1. Newmont: the world's largest gold miner by attributable ounces
Newmont guided 2026 attributable gold production to approximately 5.3 million ounces,
including over 3.9 million ounces from its managed operations, with declared attributable gold
reserves of 118.2 million ounces and resources of 148.7 million ounces, alongside
significant copper (12.5 million tonnes reserves) and silver (442 million ounces reserves) exposure
(Newmont, Q4/FY2025 results, 19 Feb 2026).
Production is weighted toward the second half of 2026 (52%), driven by Boddington, Tanami, Lihir,
Cerro Negro, and Peñasquito.
2. Barrick Mining Corporation: 3.26 million ounces, guidance for 2026 lower
Barrick (renamed from Barrick Gold to Barrick Mining Corporation) reported full-year 2025
gold production of 3.26 million ounces (3.03 million ounces excluding divested assets
Hemlo and Tongon), with 2026 guidance of 2.90–3.25 million ounces. Attributable
measured and indicated gold resources stand at 150 million ounces at 1.01 g/t, with inferred
resources of 43 million ounces at 1.0 g/t
(Barrick, Full Year and Q4 2025 Results).
3. AngloGold Ashanti: production up 15% on Sukari and Obuasi ramp-ups
AngloGold Ashanti's Group gold production rose to 3.1 million ounces in 2025, up
from 2.7 million ounces in 2024, with growth driven by Obuasi (+20%), Siguiri (+6%), Geita (+2%),
Cerro Vanguardia (+2%), and the first full-year contribution from the Sukari mine (500,000 ounces).
Total Group gold Mineral Reserves rose 17% year-on-year to 36.5 million ounces, and
2026 production guidance is set at 2.80–3.17 million ounces
(AngloGold Ashanti, Q4/FY2025 Earnings Release).
Reuters attributed the company's profit surge directly to the combination of record gold prices and
higher output
(Reuters, 20 Feb 2026).
4. Agnico Eagle, Kinross, Gold Fields, and Harmony: the second tier
Agnico Eagle produced 3,447,367 ounces of gold in 2025 at
production costs of $965/oz, and has guided three-year production to a stable 3.3–3.5 million
ounces annually from 2026 through 2028, with Detour Lake targeted for expansion toward roughly one
million ounces per year
(Agnico Eagle, Q4/FY2025 Results).
Kinross Gold produced 2,012,106 gold-equivalent ounces on an attributable
basis in 2025, down 5% from 2024's 2,128,052 ounces, as planned
(Kinross, 2025 Q4/FY Results).
South Africa's Harmony Gold reported total FY25 (year to 30 June 2025) production
of 46,023 kg (1,479,671 oz), a planned 5% decrease from FY24's 48,578 kg, with FY26
guidance of 1.4–1.5 million ounces
(Harmony Gold, FY25 Results).
Gold Fields, headquartered in South Africa with a globally diversified portfolio including
Ghana, Australia, and Peru, remains among the world's top-ten gold producers by output, though its
specific 2025 attributable production is reported alongside AngloGold Ashanti and Harmony as one of
the South Africa-founded majors tracked closely by
USGS Mineral Commodity Summaries 2025 — Gold.
5. Zijin Mining and Zhaojin: China's gold champions go global
Zijin Mining Group produced 90 tonnes of mined gold in 2025, up 23% year on
year — one of the fastest growth rates among major global miners — driven
substantially by the newly acquired Akyem Gold Mine in Ghana and Raygorodok Gold Mine in Kazakhstan,
alongside Shanxi Zijin and Serbia Zijin Mining. Overall AISC was US$1,501/oz in 2025,
up 3% from US$1,458/oz in 2024
(Zijin Mining, 2025 Annual Results).
Zijin's newly listed Hong Kong subsidiary, Zijin Gold International, reported
mine-produced gold of 46.9 tonnes in 2025 (up ~20% year-on-year), revenue of
approximately US$5.38 billion (+80%), and net profit of roughly US$1.87 billion (+202%), with 2026
production guided to approximately 59.2 tonnes and 2028 to 70–75 tonnes
(Zijin Gold International, 2025 Annual Results).
China's domestic mined gold production overall was 381 tonnes in 2025 per the China
Gold Association, with Zijin's controlled mines representing about 23% of the national total
(FuTu News, Zijin Mining 2025 annual report review).
Zhaojin Mining, based in Shandong, is China's other major listed gold producer, though its detailed
2025 output was not independently verified in this research pass and is therefore omitted rather
than estimated.
Current status (July 2026):
Western majors (Newmont, Barrick, Agnico Eagle) are broadly guiding flat-to-declining ounces for
2026 as high-grade ore depletes at legacy assets, while Chinese consolidators (Zijin) are guiding
aggressive growth through acquisition. Watch: Zijin Gold International's pursuit of
United Gold, further Chinese miner M&A in Africa and Central Asia, and full-year 2026 guidance
updates from the Western majors.
Every ounce of gold that trades as “loco London” unallocated metal, backs a physically
allocated ETF share, or settles an SGE fix ultimately sits in a physical vault, cast by an accredited
refiner into a Good Delivery bar. This infrastructure — largely invisible to end investors
— is what allows paper claims on gold to trade at the speed of financial markets while the
metal itself moves only rarely.
1. London's vault network: roughly 9,300 tonnes behind the world's biggest OTC market
London's precious-metals vaults held 7,449 tonnes of gold worth $298 billion as of
31 March in the LBMA's first published vault-holdings disclosure, alongside 32,078 tonnes of silver
— equivalent to roughly 596,000 gold bars, which stacked vertically would reach two and a half
times the height of Mount Everest
(CGTN, LBMA vault-holdings disclosure).
By one 2026 estimate, London vault holdings had grown to approximately 9,300 tonnes,
against average daily loco-London turnover of roughly $60 billion
(Golden Ark Reserve, London Bullion Market explainer).
Custody concentrates among six operators inside the M25 motorway perimeter that defines “Loco
London” status: the Bank of England (sovereign-tier custody since 1694),
three clearing banks that also run their own vaults (HSBC, JPMorgan, ICBC Standard Bank),
and three specialist security carriers — Brink's, Malca-Amit, and Loomis International
— that operate the non-bank vault layer
(Golden Ark Reserve).
2. Brink's, Malca-Amit, and Loomis: the carrier-vault layer
Brink's, headquartered near Heathrow Airport (Feltham, Middlesex), is the largest of
the three carrier-vault operators globally, handling a substantial share of physical gold and silver
moving by air freight into and out of the UK, including refinery deliveries and ETF allocation
movements. Malca-Amit Commodities operates a London vault in Hounslow, also near
Heathrow, rated Grade XII (EX)(CD) — the highest European vault classification — and
serves ETF mandates outside the HSBC/JPMorgan concentration, with parallel facilities in Singapore
and Hong Kong feeding the Asia-Pacific corridor
(Malca-Amit, London Vaulting Facilities).
Loomis International holds the smallest of the three carrier vault books in London
by reported holdings, operating from Shepperton Business Park; all three firms provide vaulting
services to institutional platforms such as BullionVault, holding allocated bars under contracts
that keep vault operator and platform legally and financially independent of each other
(BullionVault, London Vault).
All bars entering a Loco London vault must be accompanied by an LBMA Good Delivery certification, and
the receiving vault performs a weighing and physical acceptance check before crediting the metal into
the clearing system.
3. The LBMA Good Delivery List: the gatekeeper standard for refiners
The London Good Delivery bar — 400 troy ounces (12.4 kg), minimum 99.5%
purity — is the physical unit underlying the entire London market, and only bars cast by
refiners on the LBMA's accredited list are accepted into London vaults without further assay or
cost (Golden Ark Reserve, LBMA-Accredited Vault List).
Leading Swiss refiners on the list — PAMP Suisse, Valcambi, Metalor, and Argor-Heraeus
— together process a large share of the world's Good Delivery bar output and supply both
institutional and retail bar markets
(Golden Ark Reserve, Swiss gold bar refineries and standards).
Elsewhere, Rand Refinery in South Africa, the Perth Mint in
Australia, and the Royal Canadian Mint serve their respective domestic mining
industries and are widely held by central banks as trusted sovereign-linked refining brands
(BullionStar, World's Largest Precious Metals Refineries).
In India, MMTC-PAMP (a joint venture with PAMP Suisse, based in Haryana) is the
country's LBMA-accredited refiner, reflecting India's status as one of the largest consumer gold
markets in the world
(FirstGold, World Directory of LBMA-Accredited Refineries).
China's domestic refining base is separately accredited by the Shanghai Gold Exchange, with several
Chinese refiners cross-recognized between the SGE and LBMA good-delivery lists to allow metal to move
between the two systems
(Shanghai Futures Exchange, LBMA-Designated Qualified Suppliers Recognized by SHFE).
4. Why the vault layer matters for market function, not just storage
The carrier-vault system is what allows the enormous volume of unallocated, paper-settled gold
trading in London and on COMEX to coexist with a comparatively modest physical stock actually
changing hands. LBMA vault-holdings disclosure estimated that of the gold held in London vaults,
roughly 1,485 tonnes was probably allocated to physically-backed exchange-traded funds,
leaving an estimated 1,460–1,965 tonnes in unallocated and allocated accounts available for
day-to-day OTC trading activity
(CGTN, LBMA vault-holdings disclosure).
This structure means that a sudden shift in ETF demand or a spike in physical delivery requests on
COMEX can visibly strain the available free float of vaulted metal well before total above-ground
gold stocks (roughly 220,000 tonnes globally) would suggest any scarcity.
Current status (July 2026):
London vault holdings remain near multi-year highs, reflecting both price appreciation and continued
ETF inflows. Watch: LBMA's periodic vault-holdings disclosures, refiner-level Good
Delivery List additions or suspensions, and any further consolidation among the three carrier-vault
operators.
Investment demand — spanning physically-backed ETFs, central bank reserve accumulation, bars
and coins, and a fast-growing tokenized-gold segment — has been the dominant swing factor
behind gold's 2023–2026 price run, more than offsetting a structural decline in
price-sensitive jewellery demand.
1. Gold ETFs: from multi-year outflows to 4,000+ tonne holdings
Global gold-backed ETF holdings reached 4,137 tonnes at the end of April 2026, the
third-highest level ever recorded, just below the record of 4,176.1 tonnes set on 27 February
2026, on the back of $6.6 billion of net inflows in April alone
(Nukoud, citing World Gold Council, 7 May 2026).
SPDR Gold Shares (GLD), the largest and first U.S.-listed gold ETF, held roughly
$163.4 billion in assets as of one April 2026 snapshot, while iShares Gold
Trust (IAU) held approximately $74.2 billion
(ETF Tracker, gold ETF AUM snapshot, Apr 2026).
Earlier in the cycle, total gold ETF holdings had already climbed from roughly 3,857 tonnes in
October 2025 (up 638 tonnes year-to-date) as investors rebuilt precious-metals exposure
(Globe and Mail, citing World Gold Council data, 20 Oct 2025).
The broader physically-backed ETF universe now includes GLDM (SPDR Gold MiniShares), SGOL (abrdn),
IAUM (iShares Gold Trust Micro), OUNZ (VanEck Merk), AAAU (Goldman Sachs Physical Gold ETF), and BAR
(GraniteShares), reflecting a maturing, fee-competitive product landscape beyond the original
GLD/IAU duopoly.
2. Central bank buying: the 1,000+ tonne era gives way to a still-elevated 863 tonnes in 2025
| Year | Net central bank purchases (t) | Notes |
| 2022 | 1,136 | 55-year high per WGC data |
| 2023 | ~1,050 | Third consecutive year above 1,000t |
| 2024 | 1,092.4 (also cited ~1,044.6) | Buying exceeded 1,000t for third year running; Q4 alone 332.9t |
| 2025 | 863.3 | -21% y/y; still far above 2010-2021 average of 473t/yr |
Source: World Gold Council, Gold Demand Trends Full Year 2025, Central Banks;
World Gold Council, Gold Demand Trends Full Year 2024;
LBMA Precious Metal Prices — historical gold data.
The National Bank of Poland (NBP) was the largest single buyer for the second
consecutive year in 2025, adding 102 tonnes and lifting total holdings to 550
tonnes (28% of reserves), en route to a revised 30% target allocation raised from 20% in October 2025
(World Gold Council, Central Banks, FY2025).
The People's Bank of China added a comparatively modest 27 tonnes over the full year
2025 (versus much larger annual additions in 2022–2023), lifting reported reserves to
2,306 tonnes, or almost 9% of total reserves. The Central Bank of Turkey
added 27 tonnes in 2025 (to end-October data), lifting official holdings to 644 tonnes, while the
Reserve Bank of India had added gold in most months of 2024, taking reserves to 841
tonnes (10% of reserves) by mid-2024 with continued accumulation into 2025
(World Gold Council, Central Banks, Q2 2024).
The National Bank of Kazakhstan added a record 57 tonnes in 2025, its highest annual
buying on record back to 1993, while Brazil's central bank re-entered the market for
the first time since 2021, adding 43 tonnes between September and November 2025
(World Gold Council, Central Banks, FY2025).
3. Central bank reserves by country: legacy Western holders versus emerging-market accumulators
The largest sovereign gold holders remain the legacy industrial economies: the United
States holds approximately 8,133 tonnes — nearly equivalent to Germany, Italy, and
France combined — a position essentially unchanged since the Bretton Woods era, alongside
large holdings in Germany, Italy, France, Russia, China, Switzerland, and Japan
(ETF Tracker, gold reserves country comparison, Apr 2026).
According to IMF data compiled by the World Gold Council, total central bank and IMF gold holdings
stood at roughly 40,000 tonnes, about 20% of the global above-ground gold stock,
with euro-area countries and the U.S. accounting for about 57% of global official gold
reserves as of end-2024 even though those same central banks have been net sellers of gold
since 1970
(Brookings Institution, How important are central bank holdings of gold?).
The growth story since the 2008–09 financial crisis has instead come from emerging markets
— Russia, China, Turkey, India, Poland, Kazakhstan — and Brookings notes that
preliminary 2025 calculations suggest gold could account for roughly a quarter of global reserves by
value, primarily reflecting price appreciation rather than volume purchases
(Brookings Institution).
4. Tokenized gold: a fast-growing but still niche wrapper on physical bullion
The tokenized gold market — blockchain-based tokens each backed by allocated physical gold
— crossed $6.1 billion in total market capitalization in February 2026,
tripling in six months and up 360% year-over-year, with Tether Gold (XAUT) and
PAX Gold (PAXG) together controlling roughly 96.7% of the sector
and backing over 1.2 million ounces of physical gold in custody
(SpendNode, Tokenized Gold market analysis, Feb 2026).
XAUT, issued by Tether and backed by gold held in LBMA-accredited Swiss vaults, and
PAXG, issued by Paxos and audited monthly against London-vaulted reserves, both
trade near the international spot gold price per token, functioning as a 24/7, near-instantly
settled alternative to ETF shares that trade only during exchange hours with T+2 settlement
(BYDFi, Gold Crypto: PAXG, XAUT & Tokenized Gold 2026).
Smaller entrants in this space include Kinesis (KAU), which pairs gold-backed tokens
with a yield-sharing model tied to platform transaction fees, and newer products such as Matrixport's
XAUM, though neither approaches the scale of XAUT or PAXG. Even at $6+ billion, the
entire tokenized gold sector remains a fraction of GLD's roughly $165 billion in assets alone,
illustrating that on-chain gold is still an early-stage complement to, not a substitute for,
traditional ETF and bullion holdings
(CoinStats AI, PAX Gold market analysis).
Current status (July 2026):
Central bank buying has moderated from the exceptional 1,000+ tonne years of 2022–2024 to a
still-historically-strong 863 tonnes in 2025, while ETF holdings and tokenized gold both continue to
grow. Watch: WGC's quarterly Gold Demand Trends releases, the National Bank of
Poland's pursuit of its 30% reserve-allocation target, and further growth in XAUT/PAXG market
capitalization as a signal of institutional appetite for on-chain commodity exposure.
USGS's global consumption breakdown for 2025 — which explicitly excludes exchange-traded funds
and similar investment vehicles — shows jewellery still the single largest end use, but a much
smaller share than in prior decades, with bars, central banks, and coins collectively rivaling or
exceeding jewellery once investment demand is properly counted.
1. End-use breakdown, 2025 (excluding ETFs and similar investment vehicles)
| End use | Share of global consumption |
| Jewelry | 40% |
| Physical bars | 24% |
| Central banks and other institutions | 21% |
| Official coins, medals, and imitation coins | 7% |
| Electrical and electronics | 7% |
| Other (dental, misc. industrial) | 1% |
Source: USGS MCS 2026, gold chapter.
For the first nine months of 2025 versus the same period in 2024, USGS recorded physical bar demand
up 18%, electronics unchanged, other industrial applications down 4%, dentistry down
8%, coins and medals down 11%, and jewellery down a sharp 20% — a textbook
demonstration of jewellery's price sensitivity as gold's cost per gram roughly doubled. Global
investment in gold ETFs and similar vehicles, by contrast, reached 619 tons in the first nine
months of 2025, an increase of more than 25 times compared with the same period in 2024,
while central bank holdings (measured on this basis) fell 13% — consistent with the moderation
in official-sector buying discussed above. Total global consumption on this combined basis rose 10%
year-on-year despite jewellery's steep decline
(USGS MCS 2026).
2. Jewellery demand: India and China still dominate, both retreating at record prices
India and China remain the world's two largest jewellery gold markets by a wide margin, and both
showed clear demand destruction as prices climbed through 2024 and 2025. The World Gold Council's
Q1 2026 report captured this dynamic directly: total gold demand value hit a record $193 billion even
as underlying volume demand diverged by region — a pattern WGC described as an
“East/West divide,” with investment and safe-haven demand offsetting jewellery weakness
(Nasdaq, citing World Gold Council, Q1 2026 Gold Demand Trends).
India's gold demand had received a temporary boost in 2024 when the government cut import duties to
15%, a policy lever unique to India's outsized jewellery market and its historical sensitivity to
tariff changes
(CNBC, citing World Gold Council, 5 Feb 2025).
3. Bar and coin demand: a 12-year high in Q4 2025
Total demand in 2025, including OTC and other categories, exceeded 5,000 tonnes for the
first time on record, with Q4 2025 alone setting an all-time quarterly record of 1,303
tonnes, lifted by 175 tonnes of ETF inflows and a 12-year high in bar and coin buying of 420
tonnes
(World Gold Council, Gold Demand Trends: Q4 and Full Year 2025).
For full-year 2024, annual bar and coin demand held roughly flat at 1,186 tonnes versus 2023, while
total annual investment demand (bars, coins, and ETFs combined) rose 25% to a four-year high of 1,180
tonnes
(World Gold Council, Gold Demand Trends: Full Year 2024).
4. Technology and dental demand: small, steady, and structurally shrinking
Electrical and electronics applications account for a stable but modest 7% of global
consumption, reflecting gold's continued but non-substitutable role in high-reliability
connectors, bonding wire, and plating for premium electronics, while dental use continues a
long-term secular decline (down 8% year-on-year in the first nine months of 2025 alone) as
alternative restorative materials displace gold in most markets
(USGS MCS 2026).
Both uses are dwarfed by investment and jewellery demand and are not expected to meaningfully
influence aggregate gold demand growth in either direction over the medium term.
Current status (July 2026):
Investment demand (ETFs, bars, coins, central banks) has structurally overtaken jewellery as the
primary driver of year-on-year demand growth, a durable shift from the pre-2020 demand mix.
Watch: WGC's Q2 2026 Gold Demand Trends release, and whether Indian/Chinese
jewellery demand stabilizes if prices plateau.
Gold is unusual among metals in having an entire multilateral environmental treaty substantially
shaped by its supply chain: artisanal and small-scale gold mining (ASGM) is the single largest
source of anthropogenic mercury pollution on Earth, and the resulting 2013 Minamata Convention on
Mercury directly targets the practice.
1. ASGM's scale and its mercury footprint
Artisanal and small-scale gold mining is estimated to be responsible for over 700 tonnes per
year of mercury emissions to the atmosphere, plus an additional 800 tonnes per year
of mercury releases to land and water, making it the largest anthropogenic source of
mercury globally, per AMAP/UNEP 2013 data cited in the Minamata Convention's own guidance
documents
(Minamata Convention Secretariat, ASGM Guidance, 2017).
A peer-reviewed 2023 review in Ambio found that baseline mercury use reported across 18
countries under their National Action Plans totalled 352 tonnes per year, with
those countries targeting elimination of 37% (132.3 tonnes) of that amount by 2025 through
National Action Plan measures
(Ambio, Mercury and artisanal and small-scale gold mining, 2023).
ASGM is broadly estimated to supply on the order of a fifth of global gold output, making it a
material share of total mine supply even though it operates almost entirely outside formal corporate
reporting frameworks such as USGS's country-level production tables.
2. The Minamata Convention's ASGM provisions
The Minamata Convention on Mercury, which entered into force in 2017, requires parties with more than
de minimis ASGM activity to develop National Action Plans (NAPs) to reduce, and where
feasible eliminate, mercury use in the sector
(Minamata Convention, Developing a National Action Plan, 2018 guidance).
Technical guidance emphasizes practical harm-reduction measures over outright bans where mercury use
persists: limiting amalgamation to pre-concentrated ore rather than whole ore to reduce contaminated
tailings volume, promoting mercury-capture retorts, and explicitly prohibiting the application of
cyanide to mercury-contaminated tailings — a combination the Convention singles out as “an
action to be eliminated”
(Minamata Convention, ASGM Guidance).
Complementary guidance addresses mercury monitoring around ASGM sites and integration of mercury
reduction into national biodiversity strategies, reflecting the cross-cutting environmental and
public-health dimensions of the problem
(Minamata Convention, Integrating ASGM mercury action into NBSAPs, 2025).
3. LBMA Responsible Sourcing Programme and OECD Due Diligence Guidance
The LBMA Responsible Sourcing Programme requires every refiner on the Good Delivery
List to undergo annual third-party audits against the LBMA's Responsible Gold Guidance, itself built
directly on the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from
Conflict-Affected and High-Risk Areas, first published in 2011 and updated since
(OECD, Due Diligence Guidance for Responsible Supply Chains of Minerals).
The OECD's gold-specific supplement lays out a five-step framework: establish strong management
systems, identify and assess supply-chain risk (including “red flags” for conflict-
affected or high-risk sourcing), design a risk-management response, commission independent third-party
audits, and publicly report on due diligence performed
(OECD Due Diligence Guidance, Gold Supplement).
The framework explicitly extends to gold of artisanal and small-scale origin, requiring downstream
buyers to trace and assess ASGM-sourced material for conflict-financing and human-rights risk rather
than excluding ASGM gold outright — a distinction that has drawn scrutiny. Global
Witness published an open letter to the LBMA in 2021 raising concerns that the Responsible
Sourcing Programme “fails to curtail human rights abuse and illicit gold in the supply
chain,” arguing that audit-based assurance has not been sufficient to keep conflict-linked or
illicitly traded artisanal gold out of LBMA-linked supply chains
(Global Witness, Open Letter to LBMA, 2021).
Why it matters: gold is one of the few commodities where a global environmental
treaty (Minamata), an OECD-level due-diligence framework, and a private-sector market association
standard (LBMA Responsible Sourcing) all operate simultaneously and are meant to reinforce each
other — yet independent civil-society monitoring continues to flag gaps, particularly around
ASGM-origin material moving through refiners that hold LBMA accreditation.
Current status (July 2026):
The Minamata Convention's ASGM National Action Plan framework remains the primary multilateral tool
for reducing mercury use in gold mining, with country-level implementation uneven and mercury use
reduction targets only partially met as of the most recent reviews. LBMA's Responsible Sourcing
Programme remains the dominant private-sector gatekeeper standard for refiner accreditation.
Watch: Minamata Convention COP review outcomes, further LBMA Good Delivery List
suspensions or additions tied to responsible-sourcing audit failures, and civil-society reporting on
ASGM supply-chain traceability gaps.
Gold's average annual price rose from $1,801/oz in 2021 to an estimated $3,300/oz in
2025 — an 83% increase in four years — before intraday spot prices pushed past
$5,500/oz in January 2026, finally surpassing gold's inflation-adjusted January 1980
peak of roughly $3,590 in today's dollars for the first time
(
JM Bullion, History of Gold Prices).
| Date / period | Milestone | Primary source |
| 4 Aug 2020 |
Gold closes above $2,000/oz for the first time, driven by COVID-19 stimulus and collapsing real yields. |
Chards, Record Gold Price and All-Time Highs |
| 6–7 Aug 2020 |
Intraday spot gold peaks around $2,075/oz, an all-time record that would stand for over four years. |
MetalCharts, Gold All-Time High |
| 2021 |
Average annual price of $1,801/oz, essentially flat versus the 2020 COVID-driven rally as vaccine rollout reduced safe-haven demand. |
USGS MCS 2026 |
| 2022 |
Average annual price of $1,802/oz; central bank buying hits a 55-year high of 1,136 tonnes even as spot price stays range-bound. |
USGS MCS 2026 |
| 2023 |
Average annual price rises to $1,945/oz as central bank buying remains above 1,000 tonnes for a second consecutive year. |
USGS MCS 2026 |
| 16–20 Aug 2024 |
Spot gold breaks above $2,500/oz for the first time, reaching a record $2,509.41 intraday. |
The National, 17 Aug 2024 |
| 18 Oct 2024 |
Gold breaks above $2,700/oz, extending 2024's rally to more than 30% year-to-date — the strongest annual gain since 1979. |
Reuters, 18 Oct 2024 |
| 2024 (full year) |
Average annual price reaches $2,388/oz, a new record annual average; total demand hits a record 4,974 tonnes with central bank buying above 1,000 tonnes for the third year running. |
USGS MCS 2026; WGC, Full Year 2024 |
| 22 Apr 2025 |
Spot gold tops $3,500/oz for the first time, its 28th record high of the year, amid dollar weakness following criticism of the Federal Reserve chair. |
Reuters, 22 Apr 2025 |
| 7–8 Oct 2025 |
Gold futures and spot both cross $4,000/oz for the first time in history, the 45th new all-time high of 2025; the move from $3,500 to $4,000 took just 36 days. |
CNBC, 7 Oct 2025; WGC, 13 Oct 2025 |
| 17 Oct 2025 |
Gold hits an all-time high of $4,379.13/oz as Q4 2025 opens with continued safe-haven buying. |
Nasdaq, Gold Price 2025 Year-End Review |
| 2025 (full year) |
Estimated average annual price of $3,300/oz, a 38% increase over 2024 and a new record annual average; total demand exceeds 5,000 tonnes for the first time, with Q4 alone a record 1,303 tonnes. |
USGS MCS 2026; WGC, Full Year 2025 |
| 28 Jan 2026 |
Gold sets its all-time intraday high near $5,589–5,590/oz, with the LBMA PM benchmark fix peaking near $5,405/oz — finally exceeding the inflation-adjusted January 1980 record. |
MetalCharts, Gold All-Time High; LBMA Precious Metal Prices — historical gold data |
| Q1 2026 |
Average quarterly price of $4,873/oz, up 18% quarter-on-quarter; total Q1 demand value reaches a record $193 billion even as volume growth slows to +2% year-on-year. |
Nasdaq, citing WGC, Q1 2026 |
What the price history shows: gold's 2020–2026 run breaks into two distinct
phases. From 2020 to 2023, the price was essentially range-bound around $1,800–1,950/oz even as
central bank buying quietly hit record levels — official-sector demand was building without yet
moving the spot price. From mid-2024 onward, that accumulated buying pressure combined with ETF
inflows, dollar weakness, and geopolitical risk to produce an accelerating series of round-number
breaks: $2,500 in August 2024, $2,700 in October 2024, $3,500 in April 2025, $4,000 in October 2025,
and a peak above $5,500 in January 2026 — five major thresholds broken in under 18 months after
four years of relative consolidation.
Current status (July 2026):
Gold trades well below its January 2026 all-time high after a subsequent correction, but remains
historically elevated versus any pre-2024 benchmark. Watch: WGC's Q2 2026 Gold
Demand Trends report, Federal Reserve policy trajectory, and further central bank reserve-allocation
target changes (Poland's 30% target, potential moves by other emerging-market holders) as the key
swing factors for the second half of 2026.